It is a fact that venture capitalism today is not what it used to be.
The bountiful returns of the dotcom years are long gone and venture
capital (VC) firms are now struggling to exit their investments via
initial public offerings (IPOs) or mergers and acquisitions (M&A).
Also, a new regulatory landscape is threatening to hinder rather than
help the industry, and the companies VCs invest in require watertight
strategies for major growth.
But regardless of where their investments are based today, no VC firm has been immune to the global downturn. The number of IPOs by venture-backed companies in the U.S. plummeted from 260 in 2000 to 13 in 2009, and VC-backed M&A
I guess one of the major issues today is how -- or whether -- the much-anticipated recovery of the IPO market would be different from what took place after the dotcom crash.
Reaching back into history and looking at the technology IPO market of the 1970s; one clearly realizes it was like a backwater, with less than half a dozen companies going public each year. Despite IPOs from such future industry bellwethers as Intel and Tandem, the average deal size was around $10 million back then. The market started gaining traction, however, with the IPOs of Apple and Genentech in 1980. In that decade, there were 32 technology IPOs a year, followed by more than 100 technology stock market debuts in the first half of the 1990s. From 1996 to 1998 -- the years that experienced the first wave of Internet-related IPOs as well as Amazon's IPO -- there were 240 deals annually, which were followed by the "crazy years" of 1999 and 2000, with nearly 400 deals a year. ..................... http://goo.gl/qggQs
But regardless of where their investments are based today, no VC firm has been immune to the global downturn. The number of IPOs by venture-backed companies in the U.S. plummeted from 260 in 2000 to 13 in 2009, and VC-backed M&A
I guess one of the major issues today is how -- or whether -- the much-anticipated recovery of the IPO market would be different from what took place after the dotcom crash.
Reaching back into history and looking at the technology IPO market of the 1970s; one clearly realizes it was like a backwater, with less than half a dozen companies going public each year. Despite IPOs from such future industry bellwethers as Intel and Tandem, the average deal size was around $10 million back then. The market started gaining traction, however, with the IPOs of Apple and Genentech in 1980. In that decade, there were 32 technology IPOs a year, followed by more than 100 technology stock market debuts in the first half of the 1990s. From 1996 to 1998 -- the years that experienced the first wave of Internet-related IPOs as well as Amazon's IPO -- there were 240 deals annually, which were followed by the "crazy years" of 1999 and 2000, with nearly 400 deals a year. ..................... http://goo.gl/qggQs
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